Shares of BigBear.ai Holdings (NYSE:BBAI) closed 38.15% higher on Tuesday, February 27. Further, this penny stock (learn more about penny stocks here) has gained nearly 88% in one month, reflecting investors’ optimism over artificial intelligence (AI) computing ahead of its Q4 earnings, scheduled on March 7. BigBear.ai offers AI-led decision-intelligence solutions. Its offerings find applications in cybersecurity, supply chains & logistics, and autonomous systems. Further, the company has the U.S. Intelligence Community and the Federal Government as its customers.
It’s worth highlighting that investors’ craze for AI got a boost from chip giant Nvidia’s (NASDAQ:NVDA) stellar Q4 earnings. Notably, BBAI stock has gained over 78% since NVDA released its financials on February 21. While BBAI stock has experienced substantial growth, let’s look at the Street’s forecast for the fourth quarter.
BBAI Could Cut Losses in Q4
Wall Street sees improved Q4 revenues for BigBear.ai and expects it to cut losses. Analysts estimate that BigBear.ai will report revenue of $42.76 million in Q4, up 5.8% year-over-year. The company expects revenue from an army customer and expansion with several other customers to support its top line in Q4.
On the bottom line, Wall Street expects BBAI to post a loss of $0.05 per share in Q4, down from a loss per share of $0.23 in Q4 of 2022.
What Is the Future of BBAI Stock?
BigBear.ai’s focus on improving operational efficiency will likely help the company to reduce losses and deliver positive cash flows. However, its stock has gained quite a lot while its top-line growth rate remains low.
Thus, the stock has a Smart Score of four on TipRanks, implying it is more likely to perform in line with the broader market averages. Meanwhile, investors use TipRanks’ penny stock screener to find top-rated penny stocks.
